Morning Briefing - 29 November 2024

CommoPlast

Morning Briefing

27 November 2024

Brent: $72.81 (+ $0.34)

WTI: $68.77 (Holiday)

Naphtha CFR Japan: - $2

Ethylene CFR NEA: Stable

Ethylene CFR SEA: Stable

Propylene FOB Korea: Stable

Propylene CFR China: Stable

*Data represent closing prices of the previous trading day 

_

The Chinese PET bottle market declined by CNY 100/ton in the week ending November 29, reaching a new low for 2024 for the second consecutive week. This latest drop was driven by a downturn on the Zhengzhou Commodity Exchange, where falling crude oil prices erased the mid-week rebound seen the previous week.

Focus has now shifted to the psychologically critical CNY6,000/ton threshold, as a dip below this level may be expected to severely erode market confidence. However, with winter persisting, converter facilities undergoing maintenance shutdowns, and finished-product demand remaining cold, the near-term outlook appears pessimistic. 

____________________________________________________________________

The Indonesian homo-PP market has strengthened over the past week, supported by key factors such as tightening regional supply, which has driven up import prices, and the depreciation of the Rupiah, which has bolstered domestic offers.

This week, however, a new challenge emerged with the forward-selling of homo-PP yarn from Malaysia. These parcels, priced approximately IDR 1,000,000/ton ($63/ton) below the domestic spot market, have quickly gained traction among buyers, despite their longer delivery times.

Market participants are now closely monitoring allocations from the Malaysian supplier. A significant influx of these lower-priced shipments could shift market dynamics, influencing both local and import pricing trends.

____________________________________________________________________

Follow us on CommoPlast Official Telegram Channel for more: https://t.me/commoplast